Statoil is taking legal action against the Ohio County Commission over claims of alleged tax errors.
The Norwegian operator currently has a non-operating asset in Ohio County for which it it receives a portion of the natural gas produced by a well’s third party owner.
According to the complaint filed by Statoil, the West Virginia State Tax department only allows the operator for the wells to file property tax returns with it and valyes all economic interests in a particular well based on the operator’s returns.
For the tax year 2015, Statoil had provided revenue data to the third party operator of the Ohio County wells in which it had a “take-in-kind” interest.
The tax department is said to have valued Statoil’s “take-in-kind” interest in the wells on the returns filed by the operators of the well, according to the legal action.
Statoil also claims on February 1st that it filed a protest of last year’s propoerty taxes as it uncovered evidence it had erroneously submitted data to the third-party operator of the wells.
The company is looking for a tax relief of more than $2million and claims it petitioned the court within good time.
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